The Essex based company was hit by a string of problem contracts in its property services division and the cost of a complete corporate restructuring.

But chairman Bob Holt said Lakehouse has now “reset the dial” as “the New Year marks a transition from the old world to the new.”

Holt is particularly confident about prospects for the construction division.

Her said: “In our Construction division, we have a business that is very focused on its core education and public buildings markets and is highly experienced in delivery.

“This means that we can earn excellent returns on capital, whilst remaining cost competitive for clients.”

Construction saw revenue dip from £52.1m from £73.4m following delays caused by clients moving from single to two stage procurement.

Results show the Compliance, Energy Services and Construction divisions all made underlying profits but overall results were hit by charges from problem contracts in Property Services which forced the company to exit from some markets.

Lakehouse racked-up £43.2m in exceptional items which blew a hole in the 2016 accounts.

They included £6.6m in contract losses on property maintenance deals and a £17.4m write down on the goodwill of contracts operated by the Foster housing maintenance arm.

The company also spent £1m on making 100 staff redundant and £1.5m paying off former directors.

Holt told the Enquirer he has now assembled a more “risk averse” management team including a few senior hires from Morgan Sindall.

The level of company turnover from Property Services is also being dramatically reduced from last year’s 32% to around 20%.

Holt said: “FY16 has been a challenging year for Lakehouse but one we believe will prove to be transformational, having focused on reviewing the strategy of the Group, stabilising operational performance with a view to improvement and controlling costs at every level, whilst retaining a high quality of client service.

“We have taken tough decisions to exit some business streams within Property Services alongside bringing in a new management team to stabilise operations in the remainder of the division and reset the dial.

“The core businesses of Compliance, Energy Services and Construction are well established, excellent businesses who have a clear vision of what needs to be delivered.”

Lakehouse saw its share price rise more than 8% to just under 37p in early trading today.